ERJ staff report (LMH)
Asian rubber settled lower Tuesday as a stronger yen late in the trading day pushed down bellwether Japan rubber futures contracts, the International Rubber Consortium reports.
Benchmark June natural rubber futures on the Tokyo Commodity Exchange settled Y0.1 lower at Y312.1 a kilogram. That reversed earlier gains of up to 2.2 percent as the yen strengthened after Japan's economy minister said a yen that is too weak isn't good for the economy.
But Tocom's downside was limited due to firm fundamentals, analysts said, with the benchmark price finding support around Y310/kg.
Natural rubber prices will likely remain firm this week, said International Rubber Consortium Chief Secretary Yium Tavarolit in a weekly report. Some profit-taking may set in, but it won't be significant, he said.
June Tocom rubber extended losses to close Y1.5 lower at Y310.6/kg in the night session, which is considered part of the next trading day.
Physical rubber prices were lower, taking cues from declines in rubber futures.
Natural rubber consumption is likely to rise 5.9% to 11.6 million tons in 2013, the International Rubber Study Group said.
The forecast, made in December, is little changed from the 11.7 million tonnes forecast in July. But the percentage change is higher owing to a revision of the 2012 world-wide consumption projection to 10.9 million tons from the July projection of 11.2 million tonnes.
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Press release from International Rubber Consortium